6 Tips To Save Money Without Sacrificing Fun On Your Vacation

Summer vacation is the perfect time to unwind, explore new destinations and create lasting memories with your loved ones. However, the costs associated with travel can quickly add up, leaving some hesitant to book their next trip — or otherwise spending beyond their means.

Fortunately, it’s more than possible to have a fantastic getaway without breaking the bank. Here are six tips to save money without sacrificing fun on your summer vacation.

1. Plan Your Flight Wisely

Choosing your travel days carefully can make a significant difference in your overall costs. For most destinations, you’ll see cheaper flights and lodging for midweek stays than for weekend ones. According to data from Hopper, Tuesday and Friday domestic flight prices average about 12 percent lower than peak Sunday rates.

“The easy rule: The dates that are probably the most convenient are probably the most expensive,” Hayley Berg, lead economist at Hopper, told CNBC.

Regardless of what day you leave, booking one to three months in advance for domestic flights — and two to eight months for international flights — can help you avoid last-minute price surges.

2. Embrace Alternative Accommodations

While hotels are a popular choice for travelers, they can also be one of the most expensive aspects of a vacation. Consider exploring alternative accommodations such as vacation rentals, hostels or even campgrounds. Not only are these options often more affordable, but they can also provide unique and memorable experiences.

If you’re traveling with a larger party, vacation rentals on sites like Airbnb and Vrbo can offer a more cost-effective alternative to hotels. A NerdWallet analysis found that the average Airbnb rental for six guests costs 33 percent less than booking three hotel rooms. As a bonus, if your vacation rental has a kitchen, you can save money on dining by prepping a few meals at home.

Hostels are also a popular option for solo or small-group travelers on a budget. These lodgings offer basic amenities along with communal activities and common areas. The Price of Travel’s Hostel Index for 2023 found several hostels with rates below $10 a night, reaching $75 on the higher end.

“People who are traveling solo don’t need a whole hotel room to satisfy their requirements,” Bob Monahan, owner of Hostel du Nord, shared with Verileet. “They can forgo the costs and the superfluousness of two queen beds and a mini-fridge.”

3. Set A Daily Budget And Stick to It

One of the most effective ways to save money on vacation is by setting a daily budget and sticking to it. Before you leave for your trip, determine how much you can afford to spend each day on essentials like food, transportation and activities. Using a travel budget app can help you effectively plan and track your spending, both prior to and during your trip.

You’ll also want to set aside some extra funds in case of an emergency. Chris Carnicelli, CEO of Generali Global Assistance, recommends an additional 10 percent of your trip’s overall budget.

“Having this reserve can help provide peace of mind during your travels,” Carnicelli told Buy Side from WSJ.

4. Maximize Your Credit Card Rewards

When it comes to stretching the budget, travel rewards on credit cards can be a savvy traveler's best friend. Many travel cards offer rewards like airline miles, hotel points and statement credits that can be used to offset travel expenses. Some even offer additional perks such as complimentary airport lounge access, travel insurance and waived foreign transaction fees for additional value and peace of mind.

If you’ve been paying off your cards but aren’t seeing the rewards, remember that not all credit card rewards are automatically applied to your account. Depending on your specific card and carrier, you may need to opt in to take advantage of the perks.

“Check your existing cards for opt-in deals,” said Jake Hill, CEO of DebtHammer, to Consumer Reports. “While it’s not going to numb all of the pain to your wallet, getting 15 percent back on every transaction at a gas station, for example, is a great way to help ease that pain.”

5. Dine Like A Local

Meals out can quickly burn through your vacation budget, especially if you're dining at restaurants in popular tourist areas. You can save quite a bit by exploring neighborhood eateries, street food vendors and markets, which often cost less than traditional sit-down restaurants. Plus, you’ll have the chance to support small businesses and sample authentic culinary experiences that reflect the local culture and flavors.

If you’re looking to dine at a local restaurant, be strategic to get the most bang for your buck. For example, lunch prices tend to be cheaper than dinner prices, and you’re more likely to secure a reservation.

Matthew Kepnes, founder of Nomadic Matt’s Travel Site, also recommends exploring restaurants outside of tourist-heavy areas and attractions.

“Those restaurants are usually double the price and half as good,” Kepnes told NEA Member Benefits. “Walk three blocks away, and then start looking for a place.”

6. Take Advantage Of Free Activities (And Plan Ahead For Paid Ones)

Many destinations offer plenty of no-cost and low-cost activities and attractions for visitors, from hiking trails and beaches to museums and cultural festivals.

Research your destination beforehand and make a list of free or inexpensive activities that interest you. In addition to potentially saving hundreds of dollars, you'll have the opportunity to immerse yourself in the local culture and community, making for a richer and more authentic travel experience.

Of course, there may be some experiences you’ll want to pay for. Take the time to research and plan ahead for the experiences you want to have to avoid spontaneous overspending. Look for discounted tickets, bundle deals or special offers for attractions and activities in your destination. Many attractions offer advance purchase discounts, online promotions or annual passes to save you money.

“Think about if you’ll be visiting museums, national parks or any other locations where an annual pass might make sense,” The Points Guy’s Becky Blaine told Buy Side from WSJ. “Usually, after one to two visits, the National Parks ‘America the Beautiful’ $80 annual pass more than pays for itself.”

Whether you're exploring a new city, relaxing on the beach or embarking on a wilderness adventure, there are plenty of ways to make the most of your summer vacation without overspending. So, pack your bags, hit the road and have the time of your life while sticking to your budget!

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